Taxation: Reinforcing the Single Market for citizens
11 Apr 2014 04:01 PM
The Commission has launched two public
consultations and creatied an expert group to gather ideas on how to tackle any
tax obstacles that hinder the cross-border activity of individuals in the
Single Market. At the same time, the Commission has launched new web
pages aimed at providing useful tax information to individuals who are active
across borders.
Algirdas Šemeta, Commissioner for
Taxation said: "The strength of the European Union relies on people
being able to move freely within the Single Market to work, study and retire.
It is essential that everyone is tax compliant, but tax compliance must be made
easy too. This needs particular attention in cross-border situations, where
double taxation must be eliminated."
Statistics show that there are many EU citizens
who move across borders to work or retire or purchase goods or invest in assets
other countries. For example, around 14.1 million EU citizens (or 2.8% of the
total EU population) reside in an EU Member State other than their own and
almost 30% of EU citizens purchase offline and online goods from businesses
based in other Member States. These situations may mean that taxpayers face
complex tax declaration obligations in more than one Member State and double
taxation.
The expert group created will bring together
stakeholders to look principally at elements of direct taxation that may affect
an individual’s cross-border activity in the Single Market. Personal
income taxation and inheritance taxation will be particularly focussed on.
However, if need be, the group may also look at other taxes that affect the
mobility of persons, such as the taxation of vehicles and the taxation of
e-commerce.
One of the public consultations covers tax
problems which citizens who are active cross-border face. It includes questions
on problems that arise when individuals work or invest in other Member States,
as well as questions on measures already in place in certain Member States to
facilitate tax compliance.
The other consultation focuses on problems
related to inheritance taxation. It follows up on the Commission’s
Recommendation to Member States on this issue (IP/11/1551).
These three initiatives follow the reviews
announced in 2012 (IP/12/340)
and (IP/14/31)
earlier this year to identify discriminatory tax rules in Member States. As
work is progressing on combating cross-border tax evasion via closer
cooperation between tax administrations, there must now be a corresponding
effort to combat cross-border double taxation and compliance burdens.
Furthermore, facilitating tax compliance amongst mobile taxpayers should also
benefit tax administrations. On the
basis of the feedback received, the Commission will then decide on the
appropriate steps to take to tackle the problems identified.
More information
Frequently asked questions: MEMO/14/278
Call for applications to participate in the
expert group:http://ec.europa.eu/taxation_customs/taxation/indivi
duals/expert_group/index_en.htm
Public
consultation on tax obstacles: http://ec.europa.eu/taxation_customs/common/consulta
tions/tax/2014-04_cross_borders_en.htm
Public consultation on inheritance taxation:http://ec.europa.eu/taxation_customs/common/consulta
tions/tax/2014-04_inheritance_tax_en.htm
Direct tax problems facing citizens: http://ec.europa.eu/taxation_customs/taxation/indivi
duals/index_en.htm
Europe
Direct: http://www.europedirect.europa.eu<
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